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In an era of raging commoditization and eroding profit margins, survival depends on resilience: staying one step ahead of your customers. Sure, most companies say they're "customer-focused," but they don't deliver solutions to customers' thorniest problems. Why? Because they're stymied by the rigid "silos" they're organized around. In Reorganize for Resilience, Ranjay Gulati reveals how resilient companies prosper both in good times and bad, driving growth and increasing profitability by immersing themselves in the lives of their customers. This book shows how resilient organizations cut through internal barriers that impede action, build bridges between warring divisions, and transform former competitors into collaborators. Based on more than a decade of research in a variety of industries, and filled with examples from companies including Cisco Systems, La Farge, Starbucks, Best Buy, and Jones Lang LaSalle, Gulati explores the five levers of resilience: · Coordination: Connect, eradicate, or restructure silos to enable swift responses. · Cooperation: Foster a culture that aligns all employees around the shared goals of customer solutions. · Clout: Redistribute power to "bridge builders" and customer champions. · Capability: Develop employees' skills at tackling changing customer needs. · Connection: Blend partners' offerings with yours to provide unique customer solutions.

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It is January 2014 and Rahul Sharma, cofounder of Micromax Informatics (Micromax), the largest Indian mobile handset company, is preparing for an emergency conference call with his private equity investors. In the last six years, Micromax had grown its annual product revenues from $54M to over $1B. Unfortunately, it was difficult for the founding team to keep up with Micromax's rapid growth, triggering a series of missteps in 2010 that brought the company close to catastrophe. In response, investors had convinced Sharma and his cofounders to hire their first outside CEO, Deepak Mehrotra, and several senior professionals. With the founders working alongside the new "professionals," frequent overlaps and sometimes run-ins occurred. Now, both Mehrotra and the head of their smartphone division had resigned. Sharma evaluates their options: Would the founders need to reconsider their involvement in the company they created? Or was there still a middle ground where both founders and professionals could coexist in the business?

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Indus Towers, the world's largest telecom tower company is a joint venture between three telecom rivals in India. These rivals- Bharti Airtel, Vodafone India, and Idea Cellular- combined their telecom towers to provide "shared telecom infrastructure" to wireless telecom operators on a non-discriminatory basis. The CEO has transformed Indus from struggling start up with a monopolistic mindset into a customer-centric organization. He now wants to grow Indus's profits 100 times. However, to achieve this he needs to reconcile the conflicting objectives of Indus's shareholders. All three shareholders are also his customers and often these two roles lead to differing requirements. He needs to determine how to convince the board to take a decision keeping Indus's best interests in minds while balancing operators' interests.

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In March 2011 Japan's Fukushima Daiichi nuclear power plant was devastated by three reactor explosions and three core meltdowns in the days following a 9.0 earthquake and a tsunami that produced waves as high as 17 meters. The world is familiar with Daiichi's fate; less well known is the crisis at its sister plant, Daini, about 10 kilometers to the south. As a result of the storm, three of Daini's four reactors lacked sufficient power to achieve cooldown. To prevent the disaster experienced up north, the site superintendent, Naohiro Masuda, and his team had to connect them to the plant's surviving power sources. In a volatile environment, Masuda and Daini's hundreds of employees responded to each unexpected event in turn. Luck played a part, but so did smart leadership and sensemaking. Until the last reactor went into cold shutdown, Masuda and his team took nothing for granted. With each new problem they encountered, they recalibrated, iteratively creating continuity and restoring order. Daini survived the crisis without an explosion or a meltdown.

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This case describes the strategic and organizational challenges that Jones Lang LaSalle (JLL) faced between 2001 and 2005. Faced with the need to deliver integrated services to corporate clients in 2001, JLL created Corporate Solutions, a group that aimed to draw connections between JLL's semi-autonomous service lines. Despite initial success, by 2005 the group was finding it challenging to foster integration. Account managers and service line leaders clashed as decision-making power, pay and incentives, and clout were altered and redistributed. JLL realized that its organizational structure was hindering the firm in achieving key strategic goals, such as rapid scalability of corporate accounts and effective local market penetration. America's CEO Peter Roberts outlines the alternatives JLL's top management analyzed as they considered how to move the organization forward. This case is the second in a case series that also comprises cases A, C, and D, and collectively covers JLL's evolution between the years 1999 and 2012.

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This case describes the strategic and organizational challenges that Jones Lang LaSalle (JLL) faced between 2005 and 2008. Having dismantled its long-standing service-line-oriented structure, JLL created two interdependent groups: Accounts and Markets. Accounts housed account managers who served JLL's corporate clients. Markets housed brokers specialized in a certain geography. JLL helped drive integration between Accounts and Markets by emphasizing work at the "intersections" between both groups, i.e., instances that required combining both groups' resources. By 2008, however, JLL was facing challenges associated with harnessing the potential of this new structure. There was more growth that could be obtained from penetrating local markets, and top management wondered how to best strengthen their brokerage team. The acquisition of Spaulding and Slye, a renowned Boston-based firm, provided instant growth in some key markets, but organic growth was harder to achieve. While the industry paid brokers with a commission model, JLL did so with a salary and bonus model that aligned well with JLL's culture but proved unattractive to new recruits. America's CEO Peter Roberts outlines the alternatives JLL analyzed as they considered how to strengthen the organization while maintaining its values and integrity. This case is the third in a case series that also comprises cases A, B, and D, and collectively covers JLL's evolution between the years 1999 and 2012.

learning objective:

This case seeks to help students reflect on the co-evolution of strategy and structure, as firms face environmental challenges that substantially alter the basis of competition in their industries.

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This case describes the strategic and organizational challenges that Jones Lang LaSalle (JLL) faced at the turn of the millennium. Until then, JLL sold piecemeal commercial real estate services to its corporate clients, who maintained relationships with a variety of vendors. In 2000, JLL's large corporate clients started globalizing their activities and seeking to outsource their real estate needs. They were looking for integrated solutions delivered through a single point of contact, and they cut their providers to a few strategic vendors. JLL's organizational structure, configured around largely autonomous service lines, was not well suited to supporting the development of integrated services. Executive Peter Barge was put in charge of a new team, called Corporate Solutions, whose mission was to draw connections between the service lines in order to foster integration. How should Barge structure Corporate Solutions to make sure it succeeds in its mission? And how should he configure the group's ties to the service lines to ensure their collaboration? The retention of JLL's most profitable clients was at stake. This case is the first in a series that also comprises cases B, C, and D and collectively covers JLL's evolution between the years 1999 and 2012.

learning objective:

This case seeks to help students reflect on the co-evolution of strategy and structure, as firms face environmental challenges that substantially alter the basis of competition in their industries.

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This case describes the strategic and organizational challenges that Jones Lang LaSalle (JLL) faced between 2008 and 2012. In 2008, in order to strengthen the firm's brokerage team, JLL merged with The Staubach Company, a real estate services provider with a first-rate brokerage team and great cultural fit with JLL. Staubach paid its brokers with a commission model, which accelerated JLL's decision to let go of its long-standing salary and bonus approach. The merger also surfaced two interesting business opportunities. First, local brokers were now empowered and motivated to open up their client relationships to the rest of the company, growing their business from just local transactions to the full array of services JLL provided. Second, local brokers became aware of a great number of mid-sized clients whose real estate needs were not as sophisticated as those of large corporate accounts but who required multi-service solutions in selected geographies. JLL thus created a group called Markets Corporate Solutions, which specifically targeted mid-sized clients. Toward 2012, with its organizational structure expanding to tackle opportunities for multiple types of clients in a myriad of geographies, JLL was facing challenges associated with managing internal and external complexity. America's CEO Peter Roberts outlines the opportunities and challenges that lied ahead for JLL. This is the final case in a series that also comprises cases A, B, and C, and collectively covers JLL's evolution between the years 1999 and 2012.

learning objective:

This case seeks to help students reflect on the co-evolution of strategy and structure, as firms face environmental challenges that substantially alter the basis of competition in their industries.

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In 2012, Cisco was under intense pressure to show results: growth in its core business was decelerating and a number of exploratory ventures and acquisitions had not proven as profitable as expected. CEO John Chambers vowed to restore the company's health in a way that would support the agility and entrepreneurial mindset required to be successful in emerging sectors while continuing to achieve efficiency and profitability in Cisco's core business. In a world where technologies and customer segments were rapidly evolving, Cisco executives realized that their emphasis on working collaboratively through councils and boards (the company's staple organizational structure in the 2000s) might be impacting the Cisco's ability to be nimble and responsive. This case explores these challenges and Cisco's strategic and organizational response, with a particular focus on Cisco's comprehensive restructuring.

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